Council to consider resolution opposing water system mergers

Published: Thursday, January 3, 2013 at 4:30 a.m.

Last Modified: Wednesday, January 2, 2013 at 6:39 p.m.

During a meeting tonight, Hendersonville City Council members will consider passing a resolution to fight any North Carolina laws providing for the forced takeover of a city's water system.

The cry against a government grab was prompted by the city of Asheville's grapple with state legislators over the forced merger of its water system with a regional water and sewer authority. North Carolina's League of Municipalities has asked cities to join Asheville in their fight.

“MSD Amendments” (HB 1009) was introduced in the N.C. General Assembly in 2011 by primary sponsors Reps. Chuck McGrady (R-Henderson) and Tim Moffitt (R-Buncombe). The law sets the stage for a “forced regionalization of the Asheville water system,” according to NCLM, and started the process of a mandated merger in 2013 should the city not comply.

Leaders fear it opens the flood gates to future mergers of other city-owned water systems.

The proposed resolution states, “The forced taking of any local government infrastructure sets a dangerous precedent in the state of North Carolina, a precedent that will have a chilling effect on any local government investing in needed infrastructure in the future, thereby endangering business opportunities and economic stability in the state and resulting in job losses for citizens here and across the state.”

“(I) really can't speak to whether Hendersonville has anything to worry about, but I have told them the legislation being drafted does not anticipate the acquisition of Hendersonville Water and Sewer,” McGrady said Wednesday.

But City Council passing a formal protest would “not be helpful for Hendersonville,” he added. “We're in the midst of a fairly sensitive discussion and to have Hendersonville weigh in on a very complicated water and sewer issue that's not really about them wouldn't help.”

“MSD Amendments” passed the House by a vote of 74-39 on June 18, and the Senate 31-14 on June 27. It became law without the governor's signature on Aug. 3, but cities are not giving up without a fight.

“One issue is whether the General Assembly has the legal authority to take the assets of one unit of local government and transfer it to another forcibly, and without compensation,” NCLM said in a newsletter to member municipalities. “Also, there is a question whether, under (general statutes) N.C.G.S. §160A-321(b), the city has the authority to transfer the system without receiving voter approval.”

Asheville City Council members passed a resolution opposing the merger after a consultant told them they would be compensated for less than half of what the system is worth. A majority of citizens voted against the merger in November.

But resistance may be futile. McGrady plans to push the consolidation in a bill that also includes Henderson County's Cane Creek Water and Sewer District, which serves about 3,500 customers in the Fletcher area.

Henderson County officials said last week that they want to complete a wastewater treatment study before deciding whether joining a regional authority best serves their customers. The county also hopes for more representation on the set-to-be-formed regional authority's governing board.

City Council meets at 5:45 p.m. in council chambers at City Hall, 145 Fifth Ave. E., Hendersonville.

<p>During a meeting tonight, Hendersonville City Council members will consider passing a resolution to fight any North Carolina laws providing for the forced takeover of a city's water system. </p><p>The cry against a government grab was prompted by the city of Asheville's grapple with state legislators over the forced merger of its water system with a regional water and sewer authority. North Carolina's League of Municipalities has asked cities to join Asheville in their fight.</p><p>“MSD Amendments” (HB 1009) was introduced in the N.C. General Assembly in 2011 by primary sponsors Reps. Chuck McGrady (R-Henderson) and Tim Moffitt (R-Buncombe). The law sets the stage for a “forced regionalization of the Asheville water system,” according to NCLM, and started the process of a mandated merger in 2013 should the city not comply. </p><p>Leaders fear it opens the flood gates to future mergers of other city-owned water systems.</p><p>The proposed resolution states, “The forced taking of any local government infrastructure sets a dangerous precedent in the state of North Carolina, a precedent that will have a chilling effect on any local government investing in needed infrastructure in the future, thereby endangering business opportunities and economic stability in the state and resulting in job losses for citizens here and across the state.”</p><p>“(I) really can't speak to whether Hendersonville has anything to worry about, but I have told them the legislation being drafted does not anticipate the acquisition of Hendersonville Water and Sewer,” McGrady said Wednesday. </p><p>But City Council passing a formal protest would “not be helpful for Hendersonville,” he added. “We're in the midst of a fairly sensitive discussion and to have Hendersonville weigh in on a very complicated water and sewer issue that's not really about them wouldn't help.”</p><p>“MSD Amendments” passed the House by a vote of 74-39 on June 18, and the Senate 31-14 on June 27. It became law without the governor's signature on Aug. 3, but cities are not giving up without a fight.</p><p>“One issue is whether the General Assembly has the legal authority to take the assets of one unit of local government and transfer it to another forcibly, and without compensation,” NCLM said in a newsletter to member municipalities. “Also, there is a question whether, under (general statutes) N.C.G.S. §160A-321(b), the city has the authority to transfer the system without receiving voter approval.”</p><p>Asheville City Council members passed a resolution opposing the merger after a consultant told them they would be compensated for less than half of what the system is worth. A majority of citizens voted against the merger in November. </p><p>But resistance may be futile. McGrady plans to push the consolidation in a bill that also includes Henderson County's Cane Creek Water and Sewer District, which serves about 3,500 customers in the Fletcher area.</p><p>Henderson County officials said last week that they want to complete a wastewater treatment study before deciding whether joining a regional authority best serves their customers. The county also hopes for more representation on the set-to-be-formed regional authority's governing board.</p><p>City Council meets at 5:45 p.m. in council chambers at City Hall, 145 Fifth Ave. E., Hendersonville. </p><p>Reach Weaver at emily.weaver@blueridgenow.com or 828-694-7867.</p>